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We value your privacy. We may collect personal information from you such as identifying information (name, address, driver's license number), transactional information (products or services purchased and payment history), digital network activity (interactions with our website, IP address), geo-location data, audio recordings and other forms of personal information. We use this information for business, marketing and commercial purposes, including but not limited to, providing the products and services you request, processing your claims, protecting against fraud, maintaining security, confirming your identity and offering you other insurance and financial products.

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Green illustrated car drives across screen to transition. Another illustrated image of the car appears on screen. The car is red with several color choices (tan, blue, green and red) beneath the car as well as three different model types (EX, LX and Sport). Car begins to change to various colors and styles representing the above choices selected. A For Sale By Owner sign appears next to car illustration, then an illustration of an envelope with cash sticking out of it appears, then again an illustration of a graphic that illustrates the percentage pointing down.

Illustrated silhouette of a man with his car behind him. An illustrated image of a wrench working on a pipe appears in the next column. Then a graph showing this year's decline in the market appears in the far right column.

Red illustrated car drives across screen to transition. A visual showing the side-by-side comparison of cost appears. Then a small and large stack of dollar bills appear showing the difference in down payment. A pair of keys is also added to the graph illustrating a new car, then a car with a wrench icon is added to illustrate maintenance.

(Words on Screen)

-Lower average monthly payments than an auto loan: $408 vs $482 (4)
-Lower down payment -Taxes: No upfront sales tax payments; Tax advantages if used for business purposes
-Ability to own new car every few years -Most repairs covered by factory warranty

Yellow illustrated car drives across screen to transition. Five boxes appear in a column on the left side of the screen. A question mark appears in each box as the questions appear.

(Words on Screen)

-How long do I keep the vehicle?
-How many miles do I drive annually?
-What is my monthly budget?
-Can I afford higher insurance premiums?
-Will my lifestyle choices, such as pets or children, affect the car's condition?

(Image)

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There are many factors that can go into the decision of whether to lease or buy a car, truck or SUV. A primary consideration is how you intend to use the new vehicle. Is it an addition to your current fleet? Or is it replacing an older vehicle? Another factor to weigh is whether or not the vehicle will be used as a daily commute driver, or more likely to be what we all know as a “grocery-getter”?

Then there’s the vehicle for a new family teen driver, or one headed off to college. These are often used car purchases and by default, not necessarily a lease option.

All of these questions should be addressed before you begin your search for a new or used car, truck or SUV.

In general, some people prefer the convenience a lease offers in being able to walk away from the vehicle after a certain amount of time. There are restrictions, however, such as annual mileage and wear-and-tear on the leased vehicle.

Others enjoy the idea of eventually owning the vehicle outright. There’s something to be said for having the option of one day being able to use the equity in your purchased car, truck or SUV when you go to trade for a new one. Either way, your credit and budget will factor into this decision.

Calculate the difference

Above all, avoid overextending yourself. Whether you end up leasing or buying that new car, there are far too many temptations to go for more vehicle than you truly can afford. Go in with a clear plan and budget and stick to it!

The information in this article was obtained from various sources not associated with State Farm® (including State Farm Mutual Automobile Insurance Company and its subsidiaries and affiliates). While we believe it to be reliable and accurate, we do not warrant the accuracy or reliability of the information. State Farm is not responsible for, and does not endorse or approve, either implicitly or explicitly, the content of any third party sites that might be hyperlinked from this page. The information is not intended to replace manuals, instructions or information provided by a manufacturer or the advice of a qualified professional, or to affect coverage under any applicable insurance policy. State Farm makes no guarantees of results from use of this information.